System and method for billpay using credit-based products

ABSTRACT

Systems and methods for online billpay using credit products are disclosed. In one embodiment, in an information processing apparatus comprising at least one computer processor, a method for online billpay using a credit product may include: (1) receiving, from a customer, an identification of a merchant for online credit-based bill pay; (2) retrieving accepted payment mechanisms from the merchant; (3) selecting a payment mechanism from the accepted payment mechanisms; (4) receiving an invoice for a customer transaction with the merchant from the merchant; (5) conducting a payment transaction with the selected payment mechanism; and (6) charging the payment transaction to a credit account associated with the customer.

RELATED APPLICATIONS

This application claims the benefit of and priority to U.S. ProvisionalPatent Application Ser. No. 62/678,021, filed May 30, 2018, thedisclosure of which is hereby incorporated by reference in its entirety.

BACKGROUND OF THE INVENTION 1. Field of the Invention

The present disclosure generally relates to systems and methods foronline billpay using credit products.

2. Description of the Related Art

The use of online billpay using credit-based products is difficult.Billers generally do not accept credit cards for payment unless thecustomer provides the credit card information to the biller directly(e.g., via the biller's website, over the phone, in person, etc.). So, acustomer wishing to pay bills using a credit card must set up an onlineaccount with each biller, and then provide credit card information toeach biller.

SUMMARY OF THE INVENTION

Systems and methods for online billpay using credit products aredisclosed. In one embodiment, in an information processing apparatuscomprising at least one computer processor, a method for online billpayusing a credit product may include: (1) receiving, from a customer, anidentification of a merchant for online credit-based bill pay; (2)retrieving accepted payment mechanisms from the merchant; (3) selectinga payment mechanism from the accepted payment mechanisms; (4) receivingan invoice for a customer transaction with the merchant from themerchant; (5) conducting a payment transaction with the selected paymentmechanism; and (6) charging the payment transaction to a credit accountassociated with the customer.

In one embodiment, the accepted payment mechanisms may include a creditcard payment, ACH payment, a check payment, an EFT transfer, aninter-bank funds transfer, etc.

In one embodiment, the step of conducting a payment transaction with theselected payment mechanism may include generating a single-use creditcard number or stored value card number for a card payment, and fundingthe single-use credit card number or stored value card with funds fromthe credit account associated with the customer for an amount of theinvoice.

In another embodiment, the step of conducting a payment transaction withthe selected payment mechanism may include generating amerchant-specific single-use credit card number or stored value cardnumber for a card payment, and funding the merchant-specific single-usecredit card or stored value card with funds from the credit accountassociated with the customer for an amount of the invoice.

In one embodiment, the method may further include receiving a secondinvoice from the merchant; and funding the merchant-specific single-usecredit card or stored value card with funds from the credit accountassociated with the customer for an amount of the second invoice.

In one embodiment, the step of conducting a payment transaction with theselected payment mechanism may include providing the merchant with acheck for an amount of the invoice. The check is may be electroniccheck.

In one embodiment, the step of charging the payment transaction to acredit account associated with the customer may include redeemingcustomer reward points for an amount of the invoice, providing thecustomer with a cash advance for an amount of the invoice, etc.

According to another embodiment, a system for online billpay using acredit product may include a financial institution backend comprising atleast one computer processor and hosting a credit-based online billpayment service; and a merchant. In one embodiment, the financialinstitution backend may perform the following: receive an identificationof the merchant for online credit-based bill pay from a customer;retrieve accepted payment mechanisms from the merchant; select a paymentmechanism from the accepted payment mechanisms; receive an invoice for acustomer transaction with the merchant from the merchant; conduct apayment transaction with the selected payment mechanism; and charge thepayment transaction to a credit account associated with the customer.

In one embodiment, the accepted payment mechanisms may include at leastone of a credit card payment, ACH payment, a check payment, an EFTtransfer, an inter-bank funds transfer, etc.

In one embodiment, the financial institution backend may conduct thepayment transaction with the selected payment mechanism by generating asingle-use credit card number or stored value card number for a cardpayment and funding the single-use credit card number or stored valuecard with funds from the credit account associated with the customer foran amount of the invoice.

In one embodiment, the financial institution backend may conduct thepayment transaction with the selected payment mechanism by generating amerchant-specific single-use credit card number or stored value cardnumber for a card payment, and funding the merchant-specific single-usecredit card or stored value card with funds from the credit accountassociated with the customer for an amount of the invoice.

In one embodiment, the financial institution backend may receive asecond invoice from the merchant, and may fund the merchant-specificsingle-use credit card or stored value card with funds from the creditaccount associated with the customer for an amount of the secondinvoice.

In one embodiment, the financial institution backend may conduct thepayment transaction with the selected payment mechanism by providing themerchant with a check for an amount of the invoice. The check may be anelectronic check.

In one embodiment, the financial institution backend may charge thepayment transaction to a credit account associated with the customer byredeeming customer reward points for an amount of the invoice, byproviding the customer with a cash advance for an amount of the invoice,etc.

BRIEF DESCRIPTION OF THE DRAWINGS

For a more complete understanding of the present invention, the objectsand advantages thereof, reference is now made to the followingdescriptions taken in connection with the accompanying drawings inwhich:

FIG. 1 depicts a system for online billpay using credit productsaccording to one embodiment; and

FIG. 2 depicts a method for online billpay using credit productsaccording to one embodiment;

FIG. 3 depicts a method for conducting a transaction requiringpre-authorization according to one embodiment;

FIG. 4 depicts a method for conducting a transaction according to oneembodiment.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS

Embodiments disclosed herein relate to systems and methods for onlinebillpay using credit-based products.

In embodiments, even though the payment may be made from a temporaryaccount or other means, the end result is a charge against thecustomer's credit account or reward account.

Embodiments may use a dynamically generated convenience check againstthe customer's credit account and send that convenience check to thebiller. Thus, the biller may accept payment from the credit card withouteven knowing it.

Embodiments may leverage a payment network or API gateway that allowsmerchants to accept the customer's credit account credentialsdynamically so they can run the transaction themselves.

Embodiments may convert reward points to cash, and may deposit the cashinto an account (e.g., a temporary account). The funds in the accountmay be used for an ACH transaction, or a check transaction, to pay themerchant.

Referring to FIG. 1 , a system for online billpay using credit-basedproducts is provided according to one embodiment. System 100 may includecustomer 110 that uses electronic device 115. The electronic device maybe a smartphone, smart watch, computer (e.g., tablet computer,laptop/notebook computer, desktop computer, etc.), a kiosk, an ATM, anInternet of Things (“IoT”) appliance, etc.

Customer 110 may interact with financial institution 120 usingelectronic device 115. Financial institution 120 may be a bank, creditunion, or any other provider of financial services.

Financial institution 120 may host one or more accounts for customer110, such as a credit-based account (e.g., the financial institution maybe a credit card issuer), a rewards-based account, deposit accounts,etc.

Financial institution 120 may host one or more computing devices 122,such as a server, that may execute computer program 124 that providescredit-based bill payment. In one embodiment, computing device(s) 122may be provided in the cloud, and computer program 124 may be acloud-based service.

Customer 110 may use an online billpay service executed by computerprogram 124. Customer 110 may access the online billpay service using acomputer program or application (not shown) on electronic device 115, abrowser, etc. In one embodiment, the online billpay service may allowcustomer 110 to make payments to one or more merchant 130 using acredit-based account (e.g., a credit card) or a rewards-based account(e.g., rewards or loyalty points). For example, when customer 110receives a bill from merchant 130, customer 110 may request that thebill be paid by financial institution 120 using one of customer's 110credit-based accounts or rewards accounts.

Merchant 130 may be any sort of entity that provides a good or serviceto customer 110, including, for example, brick-and-mortar retailers,online retailers, utility providers, and individuals. Any suitablemerchant that may invoice customer 110 for goods or services may beincluded as is necessary and/or desired.

Although FIG. 1 depicts only two merchants 130, it should be recognizedthat a greater number or fewer number of merchants 130 may be provided.

In one embodiment, merchants 130 may provide invoices for goods orservices to financial institution 120. In one embodiment, the invoicesmay be provided to computer program 124 electronically, to financialinstitution 120 by mail, etc.

In one embodiment, third-party financial processor 125 may alsointerface with one or more merchant 130 to process payments. In such asituation, financial institution 120 may function as a broker.

For example, merchant 130 may use third-party financial processor 125,so that when customer 110 pays his or her credit card, financialinstitution 120 may have third-party financial processor pay merchant130 instead of paying merchant 130 directly. In this manner, merchant130 does not need to have an account with financial institution 120 touse the credit card bill pay system, although merchant 130 may berequired to onboard the credit card billpay system in order to use it.

Referring to FIG. 2 , a method for online billpay using credit-basedproducts is provided according to one embodiment. In step 210, acustomer of a financial institution may receive a bill from a merchant,or may request payment to a merchant using the financial institution'sonline credit-based billpay system. In one embodiment, the customer mayaccess the online billpay system using an electronic device (e.g., asmartphone, smartwatch, computer, kiosk, ATM, IoT appliance, etc.), abrowser, etc.

In step 220, a backend for the financial institution may determine ifthe identified merchant is registered.

If the merchant is not registered, in step 230, the backend maycommunicate with the merchant (e.g., by email, text, etc.) to receiveinformation about the merchant. For example, the financial institutionmay determine the types of payments accepted (e.g., credit, check,rewards, ACH, etc.) by the merchant, address information, etc.

In one embodiment, the financial institution may provide APIs to allowthe merchant to conduct the transaction. For example, APIs may beprovided at the time of onboarding via electronic documentationincluding WSDL or other self-discovered APIs, human-readabledocumentation, etc.

In one embodiment, a traditional credit card processing API at thefrontend may process the credit card side of the transaction, and,depending on how the merchant is to be paid, the backend may select theappropriate API to use.

In one embodiment, the merchant may be provided with an incentive (e.g.,no or lower cost, etc.) to register if the merchant has one or moreaccounts with the financial institution.

In step 240, the accepted payment mechanism, such as those received instep 230, may be retrieved for the merchant, and in step 250, anaccepted payment mechanism may be selected for the bill payment.

In one embodiment, the accepted payment mechanism may be selected, atthe merchant's discretion, from the various legacy payment methods themerchant may be using. The cost may be transparent to the merchant sothat the less expensive option, which may not be compatible with themerchant's systems, is visible. This may provide an incentive formerchants to move from legacy payment systems.

The merchant may be able to change payment mechanism(s) as necessaryand/or desired.

In step 260, the backend may subscribe to receive invoices from themerchant. For example, the backend may provide a notification thatinvoices are to be communicated to the financial institutionelectronically, by mail, etc.

In step 270, payment may be made to the merchant using the paymentmechanism selected by the merchant.

In one embodiment, if the merchant does not accept credit cards from thefinancial institution for the customer's online billpay, but does acceptchecks, the backend may generate a convenience check that is associatedwith the customer's credit-based account for the payment, and mayprovide the check by mail or electronically to the merchant.

In one embodiment, if the merchant also has an account with thefinancial institution, the financial institution may transfer funds tothe merchant's account within the financial institution, and may chargethe customer's credit account.

If the merchant accepts credit cards, the financial institution mayprovide the merchant with a single-use credit card number, a token, etc.that is funded by the customer's credit account for the amount. In oneembodiment, the financial institution may automatically generate thesingle-use credit card number and provide it to the merchant. Themerchant may then execute a transaction for the amount using thesingle-use credit card number.

In another embodiment, the backend may provide the merchant with amerchant-specific credit card number or token, and may fund it for theamount of each invoice from the merchant. Thus, the same credit cardnumber may be used.

If the customer wishes to use reward points, the backend may convert therequisite reward points to a cash value, and may fund a stored valuecard. single use credit card, etc. that may be provided to the merchantfor the bill. For example, the financial institution may generate asingle-use credit card for the value of the converted reward points, andmay provide the number to the merchant.

If the merchant accepts ACH transactions, the backend may transfer fundsfrom the customer's credit account into an account (e.g., a temporaryaccount, a generic ACH account, a sub-account for the customer, etc.),and may use ACH to provide the merchant with payment.

In another embodiment, the payment may be made as a cash advance to thecustomer's credit card, where standard cash advance rules would apply tomake the payment equivalent to paying with cash.

In another embodiment, EFT and/or wire transfers may be used if themerchant accepts such. The backend may transfer funds from thecustomer's credit account into an account (e.g., a temporary account, ageneric account, a sub-account for the customer, etc.), and may use EFTor wire transfer to provide the merchant with payment.

In step 280, the amount of the payment may be charged to the customer'scredit account.

In one embodiment, the customer may be incentivized such that if thecustomer has more accounts with the financial institution, the customermay potentially have more payment options (e.g., draft against bankaccount unless there are insufficient funds, and in that case, draft itagainst the credit card automatically rather than over drafting theirinsufficiently funded account).

The customer's pay journey to a registered merchant is between pay withcredit and pay with cash plus credit fallback. The actual payment methodmay not be visible to the customer beyond this distinction.

In one embodiment, for certain merchants (e.g., restaurants, rental carproviders, hotels, etc.) a temporary card or account may be generatedfor pre-authorization when the customer used a check card or credit cardso that the pre-authorization does not tie up funds or credit.

For example, the preauthorization may be made to a separate account thatmay have a credit limit set to the amount of the transaction plus anadditional amount for preauthorization. This may be based on, forexample, the customer's credit history.

If the additional amount is not included, overdraft may be used to coverthe preauthorization amount. The overdraft may be at any time, includingbefore the transaction, or after the transaction. In one embodiment, theoverdraft may be charged against another credit product that thecustomer may have with the financial institution.

Referring to FIG. 3 , an exemplary method for conducting a transactionrequiring pre-authorization is disclosed according to one embodiment.

In step 305, a transaction may be received, and, in step 310, thetransaction may be checked to determine if preauthorization is required.If it is not, in step 315, the transaction may be conducted in the usualmanner.

If preauthorization is required, in step 320, a check is made to see ifthe customer has been issued a temporary card, such as a temporarycredit card. If the customer does not have a temporary card, in step325, the customer's credit history, etc. may be reviewed to determine ifthe customer should be issued a temporary card. If the customer's credithistory and other data supports the temporary card, in step 330, atemporary card may be generated for the customer.

If the customer's credit history does no support a temporary card, instep 340, the customer's overdraft protection (if available) may beused.

In step 335, the pre-authorization amount may be applied to thetemporary card, and in step 345, the transaction may be conducted witheither the temporary card or the overdraft protection.

In one embodiment, if currency conversion is necessary, it may beautomatically completed at market rates. For example, referring to FIG.4 , e.

In step 405, a transaction may be received, and, in step 410, a checkmay be made as to whether currency conversion for the amount of thetransaction is necessary. If currency conversion is necessary, in step415, market rates may be queried and may be applied to the amount of thetransaction.

If currency conversion is not required, or after currency conversion iscomplete, in step 420, a check may be made against the customer'saccount balance to see if the customer has insufficient funds for thetransaction. If the customer does not have insufficient funds (i.e., thecustomer can fund the transaction), in step 425, the transaction may beprocessed using the customer's available funds.

If the customer has insufficient funds, in step 430, a check is made tosee if the customer has partial funds available. If the customer doesnot have partial funds available, in step 435, the transaction may beprocessed using the customer's credit account, including credit cards,alternative credit products, lines of credit, etc.

If the customer has partial funds available, in step 440, a partialamount of the transaction may be applied against a credit product (e.g.,credit cards, alternative credit products, lines of credit, etc.), andin step 445, the remaining amount may be applied against the customer'sfunds. In one embodiment, the amount that is applied against each may beset by the customer.

In step 450, the transaction may be reported as paid, and details (e.g.,amount paid with credit, customer funds, etc.) may be made available.

Hereinafter, general aspects of implementation of the systems andmethods of the invention will be described.

The system of the invention or portions of the system of the inventionmay be in the form of a “processing machine,” such as a general purposecomputer, for example. As used herein, the term “processing machine” isto be understood to include at least one processor that uses at leastone memory. The at least one memory stores a set of instructions. Theinstructions may be either permanently or temporarily stored in thememory or memories of the processing machine. The processor executes theinstructions that are stored in the memory or memories in order toprocess data. The set of instructions may include various instructionsthat perform a particular task or tasks, such as those tasks describedabove. Such a set of instructions for performing a particular task maybe characterized as a program, software program, or simply software.

In one embodiment, the processing machine may be a specializedprocessor.

As noted above, the processing machine executes the instructions thatare stored in the memory or memories to process data. This processing ofdata may be in response to commands by a user or users of the processingmachine, in response to previous processing, in response to a request byanother processing machine and/or any other input, for example.

As noted above, the processing machine used to implement the inventionmay be a general purpose computer. However, the processing machinedescribed above may also utilize any of a wide variety of othertechnologies including a special purpose computer, a computer systemincluding, for example, a microcomputer, mini-computer or mainframe, aprogrammed microprocessor, a micro-controller, a peripheral integratedcircuit element, a CSIC (Customer Specific Integrated Circuit) or ASIC(Application Specific Integrated Circuit) or other integrated circuit, alogic circuit, a digital signal processor, a programmable logic devicesuch as a FPGA, PLD, PLA or PAL, or any other device or arrangement ofdevices that is capable of implementing the steps of the processes ofthe invention.

The processing machine used to implement the invention may utilize asuitable operating system. Thus, embodiments of the invention mayinclude a processing machine running the iOS operating system, the OS Xoperating system, the Android operating system, the Microsoft Windows™operating systems, the Unix operating system, the Linux operatingsystem, the Xenix operating system, the IBM AIX™ operating system, theHewlett-Packard UX™ operating system, the Novell Netware™ operatingsystem, the Sun Microsystems Solaris™ operating system, the OS/2™operating system, the BeOS™ operating system, the Macintosh operatingsystem, the Apache operating system, an OpenStep™ operating system oranother operating system or platform.

It is appreciated that in order to practice the method of the inventionas described above, it is not necessary that the processors and/or thememories of the processing machine be physically located in the samegeographical place. That is, each of the processors and the memoriesused by the processing machine may be located in geographically distinctlocations and connected so as to communicate in any suitable manner.Additionally, it is appreciated that each of the processor and/or thememory may be composed of different physical pieces of equipment.Accordingly, it is not necessary that the processor be one single pieceof equipment in one location and that the memory be another single pieceof equipment in another location. That is, it is contemplated that theprocessor may be two pieces of equipment in two different physicallocations. The two distinct pieces of equipment may be connected in anysuitable manner. Additionally, the memory may include two or moreportions of memory in two or more physical locations.

To explain further, processing, as described above, is performed byvarious components and various memories. However, it is appreciated thatthe processing performed by two distinct components as described abovemay, in accordance with a further embodiment of the invention, beperformed by a single component. Further, the processing performed byone distinct component as described above may be performed by twodistinct components. In a similar manner, the memory storage performedby two distinct memory portions as described above may, in accordancewith a further embodiment of the invention, be performed by a singlememory portion. Further, the memory storage performed by one distinctmemory portion as described above may be performed by two memoryportions.

Further, various technologies may be used to provide communicationbetween the various processors and/or memories, as well as to allow theprocessors and/or the memories of the invention to communicate with anyother entity; i.e., so as to obtain further instructions or to accessand use remote memory stores, for example. Such technologies used toprovide such communication might include a network, the Internet,Intranet, Extranet, LAN, an Ethernet, wireless communication via celltower or satellite, or any client server system that providescommunication, for example. Such communications technologies may use anysuitable protocol such as TCP/IP, UDP, or OSI, for example.

As described above, a set of instructions may be used in the processingof the invention. The set of instructions may be in the form of aprogram or software. The software may be in the form of system softwareor application software, for example. The software might also be in theform of a collection of separate programs, a program module within alarger program, or a portion of a program module, for example. Thesoftware used might also include modular programming in the form ofobject oriented programming. The software tells the processing machinewhat to do with the data being processed.

Further, it is appreciated that the instructions or set of instructionsused in the implementation and operation of the invention may be in asuitable form such that the processing machine may read theinstructions. For example, the instructions that form a program may bein the form of a suitable programming language, which is converted tomachine language or object code to allow the processor or processors toread the instructions. That is, written lines of programming code orsource code, in a particular programming language, are converted tomachine language using a compiler, assembler or interpreter. The machinelanguage is binary coded machine instructions that are specific to aparticular type of processing machine, i.e., to a particular type ofcomputer, for example. The computer understands the machine language.

Any suitable programming language may be used in accordance with thevarious embodiments of the invention. Illustratively, the programminglanguage used may include assembly language, Ada, APL, Basic, C, C++,COBOL, dBase, Forth, Fortran, Java, Modula-2, Pascal, Prolog, REXX,Visual Basic, and/or JavaScript, for example. Further, it is notnecessary that a single type of instruction or single programminglanguage be utilized in conjunction with the operation of the system andmethod of the invention. Rather, any number of different programminglanguages may be utilized as is necessary and/or desirable.

Also, the instructions and/or data used in the practice of the inventionmay utilize any compression or encryption technique or algorithm, as maybe desired. An encryption module might be used to encrypt data. Further,files or other data may be decrypted using a suitable decryption module,for example.

As described above, the invention may illustratively be embodied in theform of a processing machine, including a computer or computer system,for example, that includes at least one memory. It is to be appreciatedthat the set of instructions, i.e., the software for example, thatenables the computer operating system to perform the operationsdescribed above may be contained on any of a wide variety of media ormedium, as desired. Further, the data that is processed by the set ofinstructions might also be contained on any of a wide variety of mediaor medium. That is, the particular medium, i.e., the memory in theprocessing machine, utilized to hold the set of instructions and/or thedata used in the invention may take on any of a variety of physicalforms or transmissions, for example. Illustratively, the medium may bein the form of paper, paper transparencies, a compact disk, a DVD, anintegrated circuit, a hard disk, a floppy disk, an optical disk, amagnetic tape, a RAM, a ROM, a PROM, an EPROM, a wire, a cable, a fiber,a communications channel, a satellite transmission, a memory card, a SIMcard, or other remote transmission, as well as any other medium orsource of data that may be read by the processors of the invention.

Further, the memory or memories used in the processing machine thatimplements the invention may be in any of a wide variety of forms toallow the memory to hold instructions, data, or other information, as isdesired. Thus, the memory might be in the form of a database to holddata. The database might use any desired arrangement of files such as aflat file arrangement or a relational database arrangement, for example.

In the system and method of the invention, a variety of “userinterfaces” may be utilized to allow a user to interface with theprocessing machine or machines that are used to implement the invention.As used herein, a user interface includes any hardware, software, orcombination of hardware and software used by the processing machine thatallows a user to interact with the processing machine. A user interfacemay be in the form of a dialogue screen for example. A user interfacemay also include any of a mouse, touch screen, keyboard, keypad, voicereader, voice recognizer, dialogue screen, menu box, list, checkbox,toggle switch, a pushbutton or any other device that allows a user toreceive information regarding the operation of the processing machine asit processes a set of instructions and/or provides the processingmachine with information. Accordingly, the user interface is any devicethat provides communication between a user and a processing machine. Theinformation provided by the user to the processing machine through theuser interface may be in the form of a command, a selection of data, orsome other input, for example.

As discussed above, a user interface is utilized by the processingmachine that performs a set of instructions such that the processingmachine processes data for a user. The user interface is typically usedby the processing machine for interacting with a user either to conveyinformation or receive information from the user. However, it should beappreciated that in accordance with some embodiments of the system andmethod of the invention, it is not necessary that a human user actuallyinteract with a user interface used by the processing machine of theinvention. Rather, it is also contemplated that the user interface ofthe invention might interact, i.e., convey and receive information, withanother processing machine, rather than a human user. Accordingly, theother processing machine might be characterized as a user. Further, itis contemplated that a user interface utilized in the system and methodof the invention may interact partially with another processing machineor processing machines, while also interacting partially with a humanuser.

It will be readily understood by those persons skilled in the art thatthe present invention is susceptible to broad utility and application.Many embodiments and adaptations of the present invention other thanthose herein described, as well as many variations, modifications andequivalent arrangements, will be apparent from or reasonably suggestedby the present invention and foregoing description thereof, withoutdeparting from the substance or scope of the invention.

Accordingly, while the present invention has been described here indetail in relation to its exemplary embodiments, it is to be understoodthat this disclosure is only illustrative and exemplary of the presentinvention and is made to provide an enabling disclosure of theinvention. Accordingly, the foregoing disclosure is not intended to beconstrued or to limit the present invention or otherwise to exclude anyother such embodiments, adaptations, variations, modifications orequivalent arrangements.

1. A method for online billpay using a credit product, comprising:receiving, at an information processing apparatus and from a userinterface, an identification of a merchant for online credit-based billpay; sending by the information processing apparatus an electroniccommunication to the merchant, wherein the electronic communicationrequests an indication of payment mechanisms accepted by the merchant;retrieving, by the information processing apparatus, a plurality ofaccepted payment mechanisms from the merchant, wherein one of theplurality of accepted payment mechanisms comprises a payment-by-creditcard mechanism; selecting, by the information processing apparatus, thepayment-by-credit card payment mechanism from the plurality of acceptedpayment mechanisms; receiving, by the information processing apparatus,a selection of a credit card for paying the merchant; receiving, by theinformation processing apparatus, an invoice for a customer transactionwith the merchant, the invoice including an indication of a monetaryamount owed to the merchant; determining, by the information processingapparatus, that payment of the invoice using the payment-by-credit cardmechanism requires preauthorization; generating, by the informationprocessing apparatus, a first temporary credit account and setting acredit limit of the first temporary credit account to the monetaryamount owed to the merchant; generating, by the information processingapparatus, a second temporary credit account and setting a credit limitof the second temporary credit account to a preauthorization amount;conducting, by the information processing apparatus, the customer atransaction with the first temporary credit card account for themonetary amount and the second temporary credit card account for thepreauthorization amount using the selected pay by credit card paymentmechanism; and charging, by the information processing apparatus, themonetary amount to the selected credit card.
 2. The method of claim 1,wherein the plurality of accepted payment mechanisms further comprise anAutomated Clearing House (ACH) payment, a check payment, an ElectronicFunds Transfer (EFT), and an inter-bank funds transfer. 3-4. (canceled)5. The method of claim 1, further comprising: receiving, by theinformation processing apparatus, a second invoice from the merchant;and funding, by the information processing apparatus, a single-usecredit card or stored value card with funds from the credit accountassociated with the customer for an amount of the second invoice.
 6. Themethod of claim 1, wherein the step of conducting a payment transactionwith the selected payment mechanism comprises: providing, by theinformation processing apparatus, the merchant with a check for themonetary amount.
 7. The method of claim 6, wherein the check is anelectronic check.
 8. The method of claim 1, wherein the step of chargingthe payment transaction to a credit account associated with the customercomprises: redeeming, by the information processing apparatus, customerreward points for the monetary amount.
 9. The method of claim 1, whereinthe step of charging the monetary amount to the selected credit cardcomprises: providing, by the information processing apparatus, thecustomer with a cash advance for the monetary amount.
 10. A system foronline billpay using a credit product, comprising: a financialinstitution backend comprising at least one computer processor andhosting a credit-based online bill payment service; wherein thefinancial institution backend performs the following: receive, from auser interface of the credit-based online bill payment service, anidentification of a merchant for online credit-based bill pay from acustomer; send an electronic communication to the merchant, wherein theelectronic communication requests an indication of available paymentmechanisms accepted by the merchant; retrieve a plurality of acceptedpayment mechanisms from the merchant, wherein one of the plurality ofaccepted payment mechanisms comprises a payment-by-credit card paymentmechanism; select the payment-by-credit card payment mechanism from theplurality of accepted payment mechanisms; receive a selection of acredit card for paying the merchant; receive an invoice for a customertransaction with the merchant, the invoice including an indication of amonetary amount owed to the merchant; determine that payment of theinvoice using the payment-by-credit card mechanism requirespreauthorization; generate a first temporary credit account and settinga credit limit of the first temporary credit account to the monetaryamount owed to the merchant; generate a second temporary credit accountand setting a credit limit of the second temporary credit account to apreauthorization amount; conduct the customer transaction with the firsttemporary credit card account for the monetary amount and the secondtemporary credit card account for the preauthorization amount using theselected pay by credit card payment mechanism; and charge the monetaryamount to the selected credit card.
 11. The system of claim 10, whereinthe plurality of accepted payment mechanisms further comprise anAutomated Clearing House (ACH) payment, a check payment, an ElectronicFunds Transfer (EFT), and an inter-bank funds transfer. 12-13.(canceled)
 14. The system of claim 10, wherein the financial institutionbackend further receives a second invoice from the merchant, and funds asingle-use credit card or stored value card with funds from the creditaccount associated with the customer for the monetary amount.
 15. Thesystem of claim 10, wherein the financial institution backend conductsthe payment transaction with the selected payment mechanism by providingthe merchant with a check for the monetary amount.
 16. The system ofclaim 15, wherein the check is an electronic check.
 17. The system ofclaim 10, wherein the financial institution backend charges the paymenttransaction to a credit account associated with the customer byredeeming customer reward points for the monetary amount.
 18. The systemof claim 10, wherein the financial institution backend charges thepayment transaction to a credit account associated with the customer byproviding the customer with a cash advance for the monetary amount.